If a share of Rs. 10 on which Rs. 6 has been paid is forfeited, the minimum price it can be reissued is ________.

Rs. 10

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs. 8

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs. 6

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs. 4

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is C Rs. 4
The forfeited shares can be reissued by the company at any price. But in no case, the amount collected on reissue of share price plus the amount already forfeited be less than the amount credited as paid upon reissue of shares. For example, if a share of Rs. 10 on which Rs 6 has already been paid is forfeited and reissued as fully paid, the a minimum of Rs. 4 must be collected.

Suggest Corrections

Similar questions

Q. If a shares of Rs.

10

on which Rs.

8

has been paid up is forfeited, it can be re-issued at the minimum price of ______.

Q. A company has forfeited

400

shares of

R s . 10

each. The shareholder has paid

R s . 3

per share on these shares and balance of

R s . 7

has not been paid by him. Company can reissue these on maximum discount of

(a) Ravi Ltd. forfeited 800 shares of Rs 10 each, Rs 7.50 paid, for non-payment of Final Call of Rs 2.50 per share. Out of these, 600 shares were re-issued as fully paid up in such a way that Rs 2,100 were transferred to capital reserve. Pass necessary journal entries.

(b) X Ltd. forfeited 800 shares of Rs 10 each, Rs 7.50 called-up, for non-payment of Final Call of Rs 2.50 per share. Out of these, 600 shares were re-issued for Rs 6 per share as Rs 7.50 paid up. Pass necessary journal entries.

(c) 400 shares of Rs 10, on which Rs 8 has been called and Rs 6 has been paid, are forfeited. Out of these, 300 are re-issued for Rs 7 as fully paid. Pass necessary journal entries.

Q. A company has issued